Dow Futures Dip as Boeing Stays Grounded

Boeing will suspend production of its 737 Max aircraft next month

Managing Editor
Dec 17, 2019 at 9:18 AM
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Markets kicked off the week with record highs yesterday, but Dow Jones Industrial Average (DJI) futures are signaling a slightly lower open today. After a 4.3% drop on Monday, Boeing (BA) once more is the culprit, with the shares under pressure after the aerospace giant officially announced it's suspending production of the 737 Max jet, beginning in January. On the other hand, S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are cautiously higher. Elsewhere, U.S. housing starts rose 3.2% in November, more than anticipated. 

Continue reading for more on today's market, including: 

  • Schaeffer's Senior V.P. of Research Todd Salamone explains the best way to manage risk right now.
  • This tech stock has room to run.
  • Plus, Roku's CFO stepping down; red-hot Micron upgraded; and Royal Bank of Scotland under pressure from stress tests.  

Stock Futures Chart Dec 17

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.36 million call contracts traded on Monday, compared to 829,400 put contracts. The single-session equity put/call ratio rose to 0.61, while the 21-day moving average stayed at 0.59.
  2. Roku Inc (NASDAQ:ROKU) stock is down 3.4% ahead of the bell, after the company's chief financial officer (CFO), Steve Louden, reported he will step down once a successor is found. The streaming stock is set to breach support at its 120-day moving average, should today's price action pan out. 
  3. Micron Technology, Inc. (NASDAQ:MU) is up 1.3% in electronic trading, after Wedbush upgraded the chip stock to "outperform" from "neutral," while hiking its price target to $65 from $44. The analyst in coverage cited an improving pricing environment for memory chips. MU is currently riding a five-day winning streak ahead of tomorrow night's earnings report, and hit an annual high of $54.30 yesterday. 
  4. The shares of Royal Bank of Scotland Group PLC (NYSE:RBS) are down 5.3% before the open, under pressure after the Bank of England stress tests. There are concerns that share buyback plans are in danger amid capital increases in 2020. The bank stock gapped higher last week in the wake of the U.K. election, and was up 35% in the last three months heading into today. 
  5. Today will feature JOLTS on the economic front. Meanwhile, earnings will be heard from FedEx (FDX_, Navistar (NAV), and Steelcase (SCS).

Buzz Chart Dec 17

Trade Tailwinds Boost Asian Stocks; Europe Weighed by Brexit Drama

It was another strong showing for stocks in Asia, as trade-deal tailwinds kept the major indexes moving higher. In China, the Shanghai Composite rallied to its highest close in three months, adding 1.3% on the day. The Hang Seng in Hong Kong followed suit with a 1.2% rise, while the Nikkei in Japan grabbed a 0.5% win. In South Korea, the Kospi closed up 1.3%. 

In Europe, stocks are struggling for upside due to fresh worries about a no-deal Brexit. London's FTSE 100 was last seen down 0.1% on the day, while the French CAC 40 and German DAX are down 0.3% and 0.8%, respectively. Among individual names to watch in the region, bank shares are in focus after Monday night’s stress tests from the Bank of England, with Lloyds Banking Group coming in as one name selling off sharply. Britain’s Unilever stock is also grabbing headlines due to its weakness, stemming from the consumer goods giant’s disappointing sales outlook. 

 

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